A: Mortgage Theories

Lien theory (borrower keeps title, lender gets lien). Title theory (lender receives title). Nonrecourse protects personal assets despite debt exceeding value.[cite: 1]

B: Redemption

Equity of redemption prevents foreclosure if paid before cutoff. Clogs (automatic transfer on default) are impermissible. Statutory redemption occurs after valid sale.[cite: 1]

C: Priority & PMM

First in time baseline. Purchase-money mortgage defeats prior judgments of buyer but not pre-existing burdens on seller. Seller PMM usually beats third-party PMM.[cite: 1]

D: Future Advances & Mods

Optional advances after notice of intervening lien lose priority. Prejudicial modifications (rate increase) subordinate the modified amount.[cite: 1]

E: Transfers

Assuming buyer takes personal liability; subject-to buyer does not. Original borrower remains liable unless novated. Due-on-sale enforcement exceptions exist for family/trusts (under 5 units).[cite: 1]

F: Foreclosure & Proceeds

Senior foreclosure terminates joined juniors. Junior foreclosure leaves senior intact (buyer takes subject to). Surplus pays juniors then owner. Deficiencies depend on fair value/recourse limits.[cite: 1]